Standard Chartered has won the advisory mandate for Kenya Petroleum Refineries (KPR) expansive upgrade for its Mombasa oil refinery.

Neil Van Niekerk, Standard Bank’s project and export finance director confirms to GTR that the total project costs are estimated to be $1.05bn “and will be firmed up in the coming months”.

A spokesperson at Standard Chartered tells GTR: “Standard Chartered, was appointed the sole advisory mandate after a competitive bidding process, and will be responsible for raising finance and structuring the funding to facilitate the refinery’s improvement process.”

KPRL is owned by Essar Energy and the government of Kenya, and aims to increase the current production of crude oil from 1.6 million to 4 million tonnes per year. KPRL plans to deliver economic benefits for surrounding economies with the development of the refinery.

Van Niekerk tells GTR: “Our mandate includes assisting KPLC in structuring and packaging the financing to meet the requirements of local and international lenders, including social and environmental standards.”

KPRL was originally set up by Shell and BP to serve the East African region in the supply of a wide variety of oil products.